Lumentum, No.1 with 42% market share
II-VI, chasing behind with 5%P
Joins as a 3D sensing supplier for Apple
Acquired Coherent and increasing scale
The market for 'VCSEL', a core chip for 3D sensing and LiDAR, has changed to a 'two-top' system within 5 years. While the leading operator, Lumentum, is firmly defending its throne, second place II-VI is catching up. The VCSEL market is expected to grow at an annual rate of 19.2% over the next five years.
According to French market research firm Yole Développement, last year, Lumentum accounted for 42% of the VCSEL market, ranking first. In second place was II-VI with 37%. Considering that the market share of II-VI in 2017 was only 14%, it has grown rapidly. II-VI is believed to have joined as a 3D sensing supplier for Apple and increased its scale by acquiring related companies such as Coherent. The combined market share of Lumentum and II-VI is close to 80%. Yole Développement has estimated that the VCSEL market has nearly doubled since 2018.
Market growth is also expected to be steep. The VCSEL market is expected to grow to $1.6 billion this year, and $3.9 billion by 2027. Demand for VCSELs was previously large in the telecommunication equipment field, but the focus shifted to mobile since Apple released an iPhone with a VCSEL chip for facial recognition. Currently, the largest VCSEL market is in the mobile and consumer sector, reaching $840 million. Mobile VCSEL sales are projected to more than double to $1.9 billion in 2027.
The sector with the greatest growth potential is the automobile market. VCSELs, which are supplied to vehicles such as autonomous vehicles with lidar installed, is about $1.8 million this year, but this is expected to grow by 96.6% to $53 million by 2027.
By staff reporter Dong-joon Kwon (firstname.lastname@example.org)